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Diffusion and cascading behavior in random networks

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  • Lelarge, Marc
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    Abstract

    The spread of new ideas, behaviors or technologies has been extensively studied using epidemic models. Here we consider a model of diffusion where the individualsʼ behavior is the result of a strategic choice. We study a simple coordination game with binary choice and give a condition for a new action to become widespread in a random network. We also analyze the possible equilibria of this game and identify conditions for the coexistence of both strategies in large connected sets. Finally we look at how can firms use social networks to promote their goals with limited information. Our results differ strongly from the one derived with epidemic models and show that connectivity plays an ambiguous role: while it allows the diffusion to spread, when the network is highly connected, the diffusion is also limited by high-degree nodes which are very stable.

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    Bibliographic Info

    Article provided by Elsevier in its journal Games and Economic Behavior.

    Volume (Year): 75 (2012)
    Issue (Month): 2 ()
    Pages: 752-775

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    Handle: RePEc:eee:gamebe:v:75:y:2012:i:2:p:752-775

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    Web page: http://www.elsevier.com/locate/inca/622836

    Related research

    Keywords: Social networks; Diffusion; Random graphs; Empirical distribution;

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    References

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    2. Andrea Galeotti & Sanjeev Goyal & Matthew O. Jackson & Fernando Vega-Redondo & Leeat Yariv, 2008. "Network Games," Economics Working Papers, European University Institute ECO2008/07, European University Institute.
      • Andrea Galeotti & Sanjeev Goyal & Matthew O. Jackson & Fernando Vega-Redondo & Leeat Yariv, 2010. "Network Games," Review of Economic Studies, Oxford University Press, vol. 77(1), pages 218-244.
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    Cited by:
    1. Kreindler, Gabriel E. & Young, H. Peyton, 2013. "Fast convergence in evolutionary equilibrium selection," Games and Economic Behavior, Elsevier, Elsevier, vol. 80(C), pages 39-67.

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